AUTHORIZING THE NEGOTIATION AND EXECUTION OF A CONTRACT WITH E3 COALITION FOR THE THIRD PARTY SOLAR INSTALLATION ON CERTAIN COUNTY FACILITIES

RESOLUTION NO. ___ - 2015

AUTHORIZING THE NEGOTIATION AND EXECUTION OF A CONTRACT

WITH E3 COALITION FOR THE THIRD PARTY SOLAR INSTALLATION

ON CERTAIN COUNTY FACILITIES

            WHEREAS, Sauk County has endeavored to conserve energy and be a wise steward of natural resources in all aspects of Sauk County operations, and solar energy is a positive step toward sustainability; and,

            WHEREAS, the third party financing model has been used by at least one other governmental entity in Wisconsin to take advantage of tax savings not available to tax exempt entities; and,

WHEREAS, the county will contract with the third party limited liability corporation to lease space on the County’s facilities for the installation of solar panels and then enter into a power purchase agreement for a specified period of time which allows investors to earn a return on their money and for the County to obtain the benefits of solar power for a low, upfront investment; and,

            WHEREAS, your undersigned committee directed the Emergency Management, Buildings & Safety Director, with the assistance of Corporation Counsel, to draft two requests for proposal, the first to do an energy audit, the results of which were received and were favorable to the third party financing model, and the second request for proposal for vendors to propose a solar installation utilizing third party solar or another financing model; and,

            WHEREAS, four proposals were received for the latter request for proposal, and your undersigned committee has reviewed the proposals and the various alternatives, and recommends E3 Coalition Option 4 which provides for a power purchase agreement with a donation cash flow as outlined on page 16 of E3’s proposal, attached hereto as an appendix; and,

            WHEREAS, it is contemplated that at this point the county facilities that will receive installation of solar panels will be the Law Enforcement Center, Highway Department and Health Care Center; and,

            WHEREAS,  your undersigned committee recommends entering into the power purchase agreement, lease and other necessary contracts with E3 subject to review and approval by the Emergency Management, Buildings & Safety Administrator and Corporation Counsel.

            NOW, THEREFORE, BE IT RESOLVED, by the Sauk County Board of Supervisors, met in regular session, that the County Board Chairperson is authorized to sign, on behalf of Sauk County, the necessary agreements to enter into the necessary contractual relationships with E3 Coalition and their partners to effectuate E3’s Option 4 subject to the following; and,

            BE IT FURTHER RESOLVED, that the Emergency Management, Buildings & Safety Administrator and Corporation Counsel, on behalf of Sauk County, shall negotiate the necessary contracts that shall be lawful and in the best interest of Sauk County, and if an acceptable contract cannot be negotiated, a report shall be made to the Property & Insurance Committee with further consideration by the County Board if necessary.

RESOLUTION NO. ___ - 2015

AUTHORIZING THE NEGOTIATION AND EXECUTION OF A CONTRACT

WITH E3 COALITION FOR THE THIRD PARTY SOLAR INSTALLATION

ON CERTAIN COUNTY FACILITIES

Page 2

For consideration by the Sauk County Board of Supervisors on October 20, 2015

Respectfully submitted:

PROPERTY & INSURANCE COMMITTEE

___________________________________              ___________________________________

Scott Von Asten, chair                                                John M. Deitrich

___________________________________              ___________________________________

Nathan Johnson                                                  William Hambrecht

___________________________________

Jeffrey P. Giebel

FISCAL NOTE: The intent and purpose of this agreement shall be that the payments to our existing electrical utility provider will be reduced by at least the amount of payments made under the power purchase agreement (PPA).  In total, the payments made under the PPA will total $658,827.22 over six years including the payout cost at the end of the 6 years, after which Sauk County will take ownership of all systems installed.  Maintenance and insurance is estimated to be approximately $13,000 the first year with annual increase thereafter.

MIS NOTE:  No MIS impact is expected at this time.